998-2095-01-07-15ar0_en

8/10/2019 998-2095-01-07-15AR0_EN

1/14

How Prosumers Leverage

4 Technologies for Greener,Reliable, Economical Energy

by Franois Borghese

998-2095-01-07-15AR0

xecut ve summaryAs the global energy landscape continues to evolve, the

proactive energy consumer, or prosumer, is emerging.

Campuses, institutions, businesses, and homeowners

are beginning to use new technologies to take direct

control of energy sustainability, reliability, and cost.

Local microgrids are being formed by dynamically

managing a variety of distributed energy resources,

including loads, onsite renewable energy production,

and energy storage. And by connecting the prosumer to

the smart grid, new information and control platforms

are enabling participation in programs that fullymonetize the flexibility of these assets.

8/10/2019 998-2095-01-07-15AR0_EN

2/14

How Prosumers Leverage 4 Technologies for Greener, More Reliable, and Economical Energy

Schneider Electric White Paper Revision 0 Page 2

Imagine a world where green, renewable sources are supplying most or all of the energy

needed for every purpose: lighting, heating, processes, and transportation. Imagine that

energy customers are able to proactively choose which energy source they want to consume.

Imagine an electricity supply that is completely reliable. Imagine a typical business or home

spends much less on their energy consumption, or actually generates revenue.

This scenario is becoming possible today with the marriage of new technologies andoperational strategies on both sides of the electricity meter.

Over the past many decades, growing energy consumption, the addition of intermittent

renewable energy generation, and severe weather events have all contributed to electrical grid

instability and energy price volatility. Electricity grid operators and utilities are taking steps to

address these challenges in a variety of ways, including looking to the demand side for help.

As part of smart grid modernizations, remunerative programs are being launched or expanded

that encourage energy customers to adjust their consumption in response to pricing signals,

penalties, or curtailment requests. Due to this potential flexibility, a customers energy-

consuming loads and any onsite energy generation capabilities are now considered important

distributed energy resources (DER), critical to helping balance the grid.

At the same time, many customers have begun taking more direct control of the cost,

reliability, and green mix of their energy supply. City districts, educational campuses, military

bases, hospitals, commercial buildings, factories, and residential homes are becoming

proactive energy consumers, or prosumers. They are enabled on this journey by a

convergence of four widely available technologies that can automate and fully monetize their

energy resources:

1. Energy management systems

2. Onsite renewable energy production

3. Electrical energy storage systems

4. Intelligent, interactive connections to the smart grid

This paper explains how these technologies are contributing to the smart, new energy

prosumer paradigm. Armed with these tools, organizations and families are managing energy

resources in a more dependable, economic, and environmentally sustainable way.

The way energy is generated, distributed, and consumed around the globe is evolving quickly.

A number of operational, financial, and social factors are influencing these changes.

Growing populations need more energy

A majori ty of the world's population now lives in cities, consuming 75 percent of our resources

and emitting most of the greenhouse gases. The United Nations estimates that by 2050, an

additional three billion people will move into these dense, resource-intense urban

environments.

As a result of these trends, the increase in worldwide energy demand is estimated to grow by

37 percent by the year 2040, based on planned policies.1A percentage of this demand will be

due to new kinds of loads, such as electric vehicles.

1IEA World Energy Outlook 2014.

The evolvingenergylandscape

Introduction

8/10/2019 998-2095-01-07-15AR0_EN

3/14



The pros and cons o f green energy

Utilities in many regions are being driven by new environmental regulations to gradually close

their central fossil-fired generating plants. Some are also phasing out nuclear plants in

response to public anti-nuclear sentiment.

Those plants will be partly replaced by renewable energy production means, such as large-

scale wind and solar farms, which have both continued to growth at a rapid pace in recent

years. For example, in Germany more than 35 percent of energy consumption is targeted to

come from renewables by 2020, and 80 percent by 2050.2

But there are challenges to integrating large amounts of renewable energy production with the

grid, due to the inherent intermittency of wind and solar power. One of the options for keeping

the grid properly balanced is for grid operators is to implement demand-side management

programs.

Open energy markets add complexity

Deregulation of energy markets is a trend already occurring in many regions of the world.

Prior to this, network operators were often integrated with the power production companies.

This meant they had full control over the majority of the power generation, matching production

to the demand.

When the opening of power markets began in the 1990s, the grid operators activities were

unbundled from generation activities. Energy trading produced a far more complex paradigm

for grid operators to manage. This has heightened the need for solutions that will help ensure

the balance between energy supply and consumption.

An aging grid infrastructu re cant keep up with demandSome of the worlds electrical infrastructure dates back to the late 1800s. In the U.S., 70

percent of the grids transmission lines and power transformers are now over 25 years old and

the average age of power plants is over 30 years3. Globally, the majority of nuclear power

2Germanys Energiewende: From Wunderkind to Troubled Adolescent?, EnergyTransition.de,

November 20133Weather-Related Power Outages and Electric System Resiliency, Campbell, Richard J., Congressional

Research Service. August 28, 2012

Figure 1Share of electricity generated

from variable renewables (per

cent) by region, within the IEA

Energy Technology Perspectives2 Degree Scenario.

Source: IEA Technology Roadmap -

Energy Storage

8/10/2019 998-2095-01-07-15AR0_EN

4/14



plants have been operating an average of 27 years, with the oldest operating about 43 years.4

Most will need to be rebuilt or replaced. In fact, one recent report warns that by 2050 nuclear

power could disappear altogether.5

Most power grids have been designed for answering peak demand, with 25 percent of

distribution and 10 percent of generation and transmission assets used less than 400 hours

per year.6

Even with this additional capacity built in, most grids were not designed for todaysloads.

In terms of performance, older transmission lines dissipate more energy than new ones,

constraining supply during periods of high energy demand.7Further, the current model of

large, centralized generation plants means that about 70 percent of electricity is lost in

generation, transmission and distribution. This equates to a global annual cost of energy loss

estimated at about $4.1 trillion.8

To address its aging grid, EDF, the largest European utility, plans to invest up to 120 billion

euros over 10 years.9However, most companies do not have the capital to invest large

amounts in upgrading. This limits increases in generation capacity and the expansion of

transmission and distribution networks. Demand-side management strategies, including the

integration of distributed energy resources, can help lower this required investment byreducing the peak demand across the grid.

Energy prices are becoming more volatile

Electricity is becoming more and more expensive in most parts of the world. In Germany,

average electricity prices for companies have jumped 60 percent over the past five years

because of costs passed along as part of government subsidies of renewable energy

producers. Prices are now more than double those in the U.S.10

In the U.S. retail residential electricity prices for the first half of 2014 are on average 3.2

percent above the same period last year, the highest year-over-year growth since 2009. One

state saw an increase of 11.8 percent.11

Severe weather increases the risk of blackouts

Power outages due to severe weather events are on the increase in some regions. In August

2003, a widespread blackout caused an estimated 55 million people to lose power across the

U.S. northeast and eastern Canada, while later that year a major power outage across most of

Italy and part of Switzerland affected 56 million people. Many more were affected by the

worlds biggest power failure in India in July 2012 that left half of the country without electricity.

Soon after, Superstorm Sandy lashed the eastern U.S., cutting power to eight million

customers.

4

Parc nuclaire mondial (production dlectricit), Connaissance des Energies, May 20125World Nuclear Industry Status Report 2014, Mycle Schneider and Antony Froggatt, July 20146U.S. Department of Energy7Economic Benefits to Increasing Electric Grid Resilience to Weather Outages, Executive Office of the

President August 20138We don't need no stinkin' grid will be the mantra of the developing world, professor says, Smart Grid

News, Sep 11, 2014, quoting Dr. Rajendra Singh, Clemson University9EDF prvoit d'investir entre 100 et 120 milliards d'euros en France sur dix ans, La Tribune, 04/2013

10Germany's Expensive Gamble on Renewable Energy, Wall Street Journal, August 2014

11Residential electricity prices are rising, US Energy Information Administration, September 2014

$119 billion / yearOnaverage, there are atleast 500000 peopleaffected daily by poweroutages in the U.S., costing$119 billion annually.Source: Lexington Institute,Ensuring Resilience of USElectrical Grid

Even with thisadditional capacitybuilt in, most gridswere not designed fortodays loads.

8/10/2019 998-2095-01-07-15AR0_EN

5/14

8/10/2019 998-2095-01-07-15AR0_EN

6/14



To access this energy flexibility, grid operators are joining with other entities, such as

commercial aggregators, to develop a variety of demand-side management (DSM) programs.

These are remunerative programs that can financially benefit energy users, as well as helping

improve the reliability of the grid.

Depending on the region, different types of programs may be offered. In some regions, such

programs have been offered for many years, dating back as early as the 1970s. But in most

regions, these are more recent initiatives.

Variable tariff prog rams

Energy price-based incentive programs encourage consumers to adjust their electricity usage,

typically by increasing the price during peak periods of high demand on the grid. The energy

manager or homeowner can then respond by shedding (turning off) one or more loads, shifting

(rescheduling) loads to another time of day, consume energy from an energy storage system,

or start producing energy onsite.

As an example, an industrial factory might shift a non-cri tical process to run during the night

instead of mid-day. Other demand management options arediscussed later in this paper.

The most common types of variable tariff programs are:

1. Critical peak pri cing (CPP) or peak demand surc harge.A higher energy price orpenalty is charged for using excessive amounts of energy at a peak time of day.

2. Time-of-use (TOU) pric ing.Different blocks of time in a 24-hour day are given differentpricing levels based on the cost of producing energy.

3. Real-time pric ing (RTP). The rate for electricity follows dynamic wholesale market

prices.

Demand response progr ams

Sometimes referred to as interruptible rates, demand response (DR) programs have been

offered to commercial and industrial (C&I) customers for many years in some regions, primarily

in the U.S. However, many other regions are starting pilot phases, intending to eventually build

Figure 2A smart grid connects energy

suppliers and consumers

together over communication

networks, enabling them to work

together to improve reliability by

dynamically balancing energy

demands.

These are remunerativeprograms that canfinancially benefit energyusers, as well as helpingimprove the reliability ofthe grid.

8/10/2019 998-2095-01-07-15AR0_EN

7/14



out full-scale markets or programs. In fact, the global amount of flexible capacity in the

commercial and industrial energy user segments addressed by DR programs is expected to

grow from 26.8 GW in 2014 to 132.3 GW in 2023.14

By aggregating the available load flexibility of many energy-consuming customers, a virtual

power plantis created, helping the utility avoid buying comparable levels of generation.

DR programs come in two main variations:

1. Committing to reduce load when demand is high.In this scenario, the customeragrees to reduce a portion of their energy consumption when the supply of electricity onthe grid is threatened. Load reduction typically needs to be exercised within two or lesshours of notice from the grid operator. Participants receive upfront payments for theamount of load capacity they can reduce.

2. Allowing direct control of loads.Usually applicable only for residential or smallcommercial businesses, this program allows the system operator to remotely shut downa specific customer load, such as an air conditioner or water heater, in exchange for anincentive payment or bill credit.

Faced with continued price volatility and grid instability in some regions, as well as increasing

competitive and financial pressures, many businesses, institutions, and homeowners want to

have more control over their electricity supply.

Enterprises are always seeking to minimize operating budgets and ensure no interruptions to

service or processes. Many are now looking at their energy supply for ways to cut costs and

boost reliability. Energy also represents a major expense for residential households, while any

extended power outages are considered a threat to a familys security.

There is also a growing movement in environmental awareness that is encouraging consumers

to seek out greener energy alternatives. Most businesses are starting to consider their carbon

footprintas an important key performance indicator.

All of these factors have contributed to the emergence of the new energy prosumer. And with

this shift, four important categories of technology are converging to enable their goals: energy

management, microgrid, energy storage, and connectivity with the smart grid. These

technologies are giving prosumers direct control over a sustainable and reliable energy supply.

They are also creating a larger, more dynamic set of distributed energy resources to help

strengthen the main grid. And all of these technologies can augment existing facilities, or be

integrated as part of new greenfieldprojects.

1. Energy management for energy efficiency

Energy management systems have existed for many years, in a number of different forms.

Most of these have been developed for use by large enterprises such as industrial plants and

commercial buildings. However, in more recent years, such solutions are becoming availablefor smaller buildings of all kinds.

Typically comprising a network of digital energy meters connected to central analysis and

control software, these systems are designed to accurately detail the consumption profiles of

various loads and processes to help identify inefficiencies, and to provide early warning of

potential risks to power quality or reliability.

14Demand Response for Commercial & Industrial Markets, Navigant Research, 2014

The new energyprosumer:taking directcontrol ofelectricity supply

8/10/2019 998-2095-01-07-15AR0_EN

8/14



Through integration with building or process management systems, or other types of control

devices, intelligent schemes can be used to perform automated load management.

Controllable loads would typically include heating, cooling and ventilation (HVAC) systems, as

well as any non-critical process systems.

If a prosumer has access to energy pricing data from their local utility, a system can also be

configured to respond directly to variable pricing signals. For example, cooling could be

reduced and building temperature allowed to rise by a degree during a period of high energy

pricing.

With an energy management system in place, a wider range of strategies can be planned and

executed, such as predicting energy needs, revealing unused power distribution system

capacity, and isolating sources of problems.

2. Onsite generation creates a green, reliable microgrid

Microgrids are essentially miniature versions of the traditional electric grid. They consist of

local energy generation resources, as well as a microgrid controller, the power distribution

system, and connected loads. Many types of energy resources can be used, including

renewable energy generation (solar,wind, water, biomass, etc.), fuel cells, natural gas or

diesel-powered engines, or combined-heat-and-power (CHP) systems. Such systems can

operate independently, in parallel with the main grid, or connected to it.

There are now more than 388 remote microgrid projects in operation, under development, or

proposed worldwide, in remote locations such as islands and isolated communities that are not

connected to a grid. However, as natural gas prices and the cost of solar panels have fallen

dramatically in recent years, grid-connected microgrids in urban areas are becoming more

common.

Figure 3A typical energy management

system for a commercial

building.

Through integration withbuilding or process

management systems, orother types of controldevices, intelligentschemes can be used toperform automated loadmanagement.

8/10/2019 998-2095-01-07-15AR0_EN

9/14



Benefits of microgrids for the prosumer include:

1. Using onsite generation as a flexible distributed energy asset.This can optimizeparticipation in a demand response program by providing a choice of using localgeneration or load management to comply with a curtailment request. In some regions,feed-in tariffs enable customers to be paid for feeding renewable energy back to grid,typically without the option for self-consumption.

2. Enabling self-consumption of green energy.Local renewable sources can be usedto displace part or all of the energy consumed from the main grid, helping reduceenergy-related greenhouse gas emissions. Adding local energy storage can help furthermaximize the use of this resource. This is discussed in the next section.

3. Mitigating the economic impacts of power disruption s.A microgrid can operate ingrid-connected mode, or island-mode in the event of blackouts. Going beyond the short-term capabilities of a typical emergency back-up system, microgrids have the potentialto run indefinitely off locally generated power or battery energy reserves.

Prime candidates for microgrids include eco-parks and large commercial or industrial facilities.

They are also ideal for enterprises where power continuity is critical to success, such as

hospitals, military bases, police and fire services, and university campuses. Many colleges and

universities have already gained experience using microgrids to supply mission-critical users

such as laboratories, research centres, surgeries, and data centres.

Microgrid solutions are also becoming available for individual, smaller buildings. These are

often solar-based generation, and may often be packaged with energy storage systems. In

some regions, adoption is being strongly encouraged by governments through attractive

financial incentives.

More on microgrids

For more detailed information onmicrogrid benefits and a view of

recent policy issues, downloadthe report:Think Microgrid - A DiscussionGuide for Policymakers,Regulators and End Users.

Figure 4A typical microgrid for a

large university campus,

showing microgrid controller

and distributed energy

assets.
http://download.schneider-electric.com/files?p_Doc_Ref=998-2095-07-23-14AR0_ENhttp://download.schneider-electric.com/files?p_Doc_Ref=998-2095-07-23-14AR0_ENhttp://download.schneider-electric.com/files?p_Doc_Ref=998-2095-07-23-14AR0_ENhttp://download.schneider-electric.com/files?p_Doc_Ref=998-2095-07-23-14AR0_ENhttp://download.schneider-electric.com/files?p_Doc_Ref=998-2095-07-23-14AR0_ENhttp://download.schneider-electric.com/files?p_Doc_Ref=998-2095-07-23-14AR0_ENhttp://download.schneider-electric.com/files?p_Doc_Ref=998-2095-07-23-14AR0_EN

8/10/2019 998-2095-01-07-15AR0_EN

10/14



Though some power utilities may view microgrids as a threat15

, they can help improve grid

resilience and power reliability, reduce line losses, and enhance integration of renewables. In

recognition of these benefits, the U.S. DOE Office of Electricity Delivery and Energy Reliability

has allocated funding for microgrid R&D16

and the U.S. microgrid market is expected to reach

$40 billion annually by 2020, with capacity growing to 4.1 GW.17

3. Energy s torage super-charges the mic rogrid

According to Navigant Research, advanced energy storage wil l represent the single largest

investment category among microgrid enabling technologyoptions by 2023.18

For example, in

the U.S., California is targeting 1,325 megawatts of energy storage capacity by 2020, requiring

around $3 billions of investment with subsidies program. In Germany, encouragements to

adopt onsite energy include subsidies for energy storage.

Advanced microgrid systems wil l often include thermal or electric energy storage. Energy

storage effectively extends the value of renewable energy sources by enabling self-

consumption to be increased by up to 100 percent. It allows locally produced energy to be

consumed when its needed, produced when its relevant, and to be sold back to the grid when

its most economically advantageous to do so.

Storing energy onsite also helps to increase energy flexibility. For example, if a prosumer is

taking advantage of a variable tariff program, stored energy can be consumed during peak

hours when grid energy prices are highest. Storage batteries can then be recharged during

gap hours, either from onsite energy sources or from grid power at lower pricing.

To optimize participation in demand response programs, stored energy can be consumed to

respond to load curtailment requests, to effectively consume less energy from the grid. If thegrid operator asks for increased consumption, batteries can be charged from the grid. Stored

energy can also be used to provide ancillary services to the grid, such as frequency or voltage

support.

15Microgrid Matchup: The Military and The Utilities, Navigant Research, June 2012

16The Advanced Microgrid - Integration and Interoperability, Sandia National Laboratories, March 2014

17Market Data: Microgrids, Navigant Research, 1Q 2013

18Microgrid Enabling Technologies, Navigant Research, Q3 2014

Case study: Microgrid keeps power flowingat remote ski resort

After a major expansion, including new ski runs and snow-making equipment,

Bear Creek Mountain Resort & Conference Center in Berks County, Pennsylvania,

USA, discovered their electrical demand began to exceed the capacity of the utility

line feeding the resort. Rather than invest in a costly upgrade to the line and

associated infrastructure, Bear Creek found a less expensive alternative: configuring

the resorts six existing backup generators into a grid-connected microgrid. An

intelligent monitoring and control system automatically transfers loads to the

generators when required to avoid exceeding the caplevel. It also allows the resort

to participate in the utilitys demand response program, with financial payments

ranging from $40,000 to over $100,000 annually.

We're getting closer tothe inflection point wheremicrogrids will become alegitimate option foralmost any campus orindustrial park.

Jesse Berst, Chief Analyst,

Smart Grid News

Energy storageeffectively extends thevalue of renewableenergy sources byenabling self-consumption to beincreased by up to 100percent.

8/10/2019 998-2095-01-07-15AR0_EN

11/14



Finally, a microgrid designed to provide critical power during and after disruptive events such

as storms will often use energy storage as a greenbackup supply. This can replace the need

to maintain a spinning reserve of energy, typically from fossil fuel based generators.

4. A smart connection to the smart grid

For the new prosumer to fully monetize the value of their energy flexibility, its crucial to

optimize how their distributed energy resources are managed. It requires tight coordination of

loads, generation, and storage. It also requires knowing the best times to offer negawatts

(curtail load) or posiwatts(provide energy) to the grid, all while ensuring comfort andmaintaining productivity.

Advanced information, communication, and control platforms are now becoming available to

enable these goals. Prosumers are given an intelligent, transparent way to manage their

distributed energy resources, as well as a simple, automated way to participate in smart grid

programs. These are typically cloud-hosted SaaS platforms, with a modem and smart gateway

installed at the prosumers location that provides access over a secure Internet connection to a

remote server.

Case study: Frances first smart grid-ready office building

In the Brittany region of northern France, the new headquarters of the regions energy

union, SDEM, has been equipped with an energy storage system linked to onsite

renewable electricity generation. The system will automatically arbitrate between

selling stored energy to the grid or auto-consuming it to supply the building. Storingrenewable energy onsite enables self-consumption to be maximized and participation

in demand response programs to be optimized. The award-winning project also

integrates a building management system with intelligent load shedding.

Figure 5Energy storage system

components

For the new prosumerto fully monetize thevalue of their energy

flexibility, its crucial tooptimize how theirdistributed energyresources aremana ed.

8/10/2019 998-2095-01-07-15AR0_EN

12/14



The platform takes into account the energy, environmental, and economic needs of the

enterprise or homeowner. It then automatically proposes the optimal arbitrage between the

different opportunities: demand response, variable tariffs, peak demand management,

maximizing self-consumption, selling energy back to the grid based, or supporting ancillaryservices.

Figure 6Commercial building running a

microgrid and interacting with the

smart grid through a typical

cloud-hosted prosumer platform.

Figure 7Typical web-based portal for a

prosumer software platform,

demonstrating automated load

shifting in response to energy

market pricing signals.

8/10/2019 998-2095-01-07-15AR0_EN

13/14



The most comprehensive of these platforms will integrate all energy-relevant drivers. This will

include weather forecast data, energy market pricing, load profiles and forecasts of the

prosumers energy needs, and any constraints on their operations. This is crucial in order to

predict the most advantageous opportunities to consume, store, or produce energy.

The platform also manages all two-way communication between the grid actors and the

prosumer. For example, a utility or aggregator will request curtailment tenders from manyenergy users, analyzing and monetizing those responses.

The prosumer will then use the platform to access the status of the curtailment orders, and

view the synthesis of past curtailments. They will also be able to monitor the status of their

generation, storage, and load assets that are being offered as flexibility to the grid. Curtailment

actions can be simplified using automation; however, the prosumers participation is always

voluntary. At any time conditions are not ideal for a business or homeowner, they can decline

an opportunity or override a pre-programmed control sequence.

To enable the exchange of data between the platform and the prosumer, the smart gateway

enables:

1. Acquisit ion of relevant status and performance datafrom all distributed energyresources

2. Sending of curtailment commands to distributed energy assets,including loadcontrollers, microgrid controllers, building management systems, or process automationsystems

3. Daily backup of all time-stamped load curves and curtailment actions

The level of intelligence and automation provided by such platforms offers a comfortable

means to manage all energy resources and program participation.

The emergence of the energy prosumer heralds a significant shift in how energy will be

generated, distributed, and consumed in the future. Energy management systems, microgrid

technologies, energy storage, and intelligent information and communications platforms are

converging. This is enabling a green, locally controlled, reliable energy supply, while

maximizing the financial benefits of participating in the smart grid.

Intelligent algorithms that accurately track and project energy needs will ensure that comfort

and productivity are maintained. And by providing an automated approach to controlling onsite

Case study: Frances first full -scale smart griddemonstration project

In the cities of Lyon and Grenoble, up to 1,000 residential homes and 40 commercial

buildings are taking part in the GreenLys project, with the goal to showcase a

functional smart grid by 2015. As part of the first stage, a commercial building

successfully executed hundreds of curtailment actions, achieving 16 percent cost

savings by temporarily shifting heating load from high-cost peak hours to off-peak

hours. The project is being expanded to include multi-site load aggregation, electric

vehicle charging, and home automation systems.

Conclusion

Prosumers are givenan intelligent,transparent way tomanage their distributedenergy resources, aswell as a simple,automated way toparticipate in smart gridprograms.

8/10/2019 998-2095-01-07-15AR0_EN

14/14


generation, storage, and consumption, local energy needs can be met while enabling a two-

way energy exchange that supports the resiliency of the larger grid.

In summary, an evolution from energy consumer to energy prosumer promises financial,

operational, environmental, and societal benefits.

Next stepsTo begin building a prosumer strategy, it is important to plan carefully to ensure return on

investment is maximized and risks are reduced.

1. Consult with an expertto help determine the local regulatory situation, electricity tariff

structure, smart grid programs availability, and all available government incentives.

2. Calculate the potential financial, environmental, and reliability benefits of installingone or more of the primary components of a prosumer solution: load management,onsite generation, energy storage, and a platform for interaction with smart gridprograms.

3. Find a solution provi der that can offer a complete range of services,including: siteaudit to determine the most optimal solution for the prosumers business, design,

project management, installation, commissioning, and lifecycle support. See below forspecial considerations for implementing a microgrid.

4. Consider complementary services,such as utility contract optimization and energyefficiency upgrades.

Franois Borgheseis the global marketing lead for the commercial and industrialenergy flexibility management offers of Schneider Electric. He is an expert in the

building controls market and has managed numerous projects, acquisitions, and

market strategies. He led the definition and launch of the companysStruxureWare Demand Side Operation software platform, including the

deployment of successful pilot projects in France and Germany.

About the author

Microgrid special considerations

The characteristics of a microgrids electrical distribution system will be different when

it operates in island mode versus when its distributed energy resources are providing

varied amounts of energy to supplement the main grid. A microgrid must be properly

designed and implemented to ensure it is safe under all operating modes and to avoid

problems with system stability, short-circuit fault current, over-current coordination,grounding, and harmonics. The microgrid provider should have deep expertise in

power systems and power quality as well as experience in designing, building, and

commissioning microgrids.

An evolution fromenergy consumer toenergy prosumerpromises financial,operational,environmental, andsocietal benefits.

998-2095-01-07-15ar0_en

Documents